Fund facts
Statistics
Modified duration
5.40 years
As at 31 Aug 2023
Fund aim
The Fund aims to provide investors a return in line with the performance of the global corporate bond market, as represented by the J.P. Morgan Global Credit Index (GCI) ESG Investment Grade Custom Maturity Index (the "Index").
Benchmark
- What does it invest in? Invests predominately in US Dollar, Euro and Sterling denominated investment grade corporate bonds, issued by developed market issuers.
- How does it invest? Passively managed, aiming to replicate the performance of the Index
- Does it promote sustainability characteristics? The Fund promotes a range of environmental and social characteristics. Further information on how such characteristics are met by the Fund can be found in the Supplement.
The Index Fund Management team comprises 25 fund managers, supported by two analysts. Management oversight is provided by the Global Head of Index Funds. The team has average industry experience of 15 years, of which seven years has been at LGIM, and is focused on achieving the equally important objectives of close tracking and maximising returns.
LGIMIndex Fund Management Team
SFDR categorisation: Article 8Article 8: These funds promote environmental and/or social characteristics
Download SFDR Product SummaryDownload LGIME PAI entity report
Environmental characteristics
The Fund promotes the following environmental characteristics relating to climate change:
- reduction of greenhouse gas emissions intensity;
- avoiding investments in certain fossil fuels; and
- support of renewable energy.
The Fund also promotes the following other environmental characteristics:
- support of renewable energy; and
- support of biodiversity and responsible land use.
Social characteristics
The Fund promotes the following social characteristics relating to social norms and standards:
- human rights, labour rights and anti-corruption as set out in the principles of the UN Global Compact; and
- avoiding the financing of controversial weapons.
No reference benchmark has been designated for the purpose of attaining the environmental or social characteristics promoted by the Fund.
Whilst environmental and social characteristics are promoted through the application of the sustainability-related investment strategy, investors are reminded that these environmental and social characteristics are not sustainable investment objectives.
The Fund follows the following sustainability-related investment strategy by tracking the Index that applies:
Battery Value-Chain Theme
Clean Water Theme
Clean Energy Theme
Hydrogen Economy Theme
Healthcare Breakthrough Theme
Pharma Breakthrough Theme
Green Bonds
RAFI ESG Score
RAFI Exclusions
Solactive PAB Optimisation
Solactive Exclusions
Net Zero
SDG Alignment
Carbon Emissions Intensity Target
LGIM ESG Score
LGIM's Future World Protection List
LGIM's Climate Impact Pledge
Foxberry Paris Aligned
MSCI Exclusions
MSCI ESG Score
JPM Exclusions
The Index:
- excludes issuers with revenue from thermal coal, oil sands, tobacco and weapons sectors,
- excludes issuers not in compliance with the United Nations Global Compact principles, as determined by the Index provider’s methodology, and
- excludes issuers with J.P. Morgan (JESG) scores less than 20, these issuers are not eligible for index re-inclusion for 12 months.
JPM ESG Score
The Index positively tilts towards issuers ranked higher on ESG criteria and underweights lower ranking issuers. The Index applies JESG issuer scores to adjust the market value of index constituents from the baseline index. JESG issuer scores are a 0-100 percentile rank calculated based on normalized raw ESG scores from third-party research providers, including Sustainalytics and RepRisk. An issuer’s finalized JESG score incorporates a 3-month rolling average. Quasi-Sovereign issuers with no coverage from either third-party research provider default to their sovereign JESG score. The JESG scores are divided into five bands that are used to scale each issue’s baseline index market value, with the band rebalance occurring on a quarterly basis.
JESG Score Bands Scalar
Band 1: Score > 80 1.00
Band 2: 60 < Score <= 80 0.80
Band 3: 40 < Score <= 60 0.60
Band 4: 20 < Score <= 40 0.40
Band 5: Score <= 20 0.00
Issuers in Band 5 will be excluded from the index and will not be eligible for twelve months. If an instrument is categorized as a “green bond” by the Climate Bonds Initiative, the security will receive a one-band upgrade. Green bonds upgrades may happen intra quarter. Green bonds by issuers already in Band 1 will not receive any further upgrades.
Additionally, the Index incorporates positive screening techniques whereby ‘green’ bonds (bonds which are created to fund projects that have positive environmental and/ or climate benefits) of the same issuer are prioritised by the Index.
Further information on the index methodology can be found at: https://www.jpmorgan.com/insights/research/index-research/composition-docs
Additional Exclusions
ESG Factor Evaluation
Decarbonisation
LGIM Coal Policy
LGIM Controversial Weapons
J.P. Morgan ESG Exclusions
J.P. Morgan ESG Score
FTSE ESG Exclusions
ROBO Global ESG Policy
Solactive ESG Exclusions
Solactive ESG Enhanced Exclusions
Nasdaq ESG Exclusions
Stoxx Exclusions
Taxonomy
While the Fund promotes environmental and social characteristics within the meaning of Article 8 of the SFDR, it does not currently commit to investing in any “sustainable investments” within the meaning of the SFDR. Accordingly, it should be noted that the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Sustainable Investments
While the Fund promotes environmental and social characteristics within the meaning of Article 8 of the SFDR, it does not currently commit to investing in any “sustainable investments” within the meaning of the SFDR.
Further information on LGIM's Sustainable Investment Methodology can be foundhere.
Principal Adverse Impacts
The Fund considers principal adverse impacts on sustainability factors and LGIM has identified a subset of the adverse sustainability indicators that are relevant to the Fund’s investments. The Fund considers principal adverse impacts, identified using the below listed sustainability indicators, through the implementation of the Fund’s ESG investment strategy.
- PAI 1: GHG emissions
- PAI 2: Carbon footprint
- PAI 3: GHG intensity of companies
- PAI 4: Exposure to fossil fuel companies
- PAI 5: Share of non-renewable energy
- PAI 7: Activities negatively affecting biodiversity-sensitive areas
- PAI 8: Emissions to water
- PAI 10: Companies violating UNGC/OECD
- PAI 14: Controversial weapons
Key literature
Prospectus09 Aug 2023Fund supplement09 Aug 2023SFDR Product Summary11 Apr 2023Product profile23 Mar 2023Non-Trading Days27 Dec 2023
Reports and accounts
2023Change date
Annual Report and Accounts31 Dec 2022Annual Report and Accounts31 Dec 2021Annual Report and Accounts31 Dec 2020Annual Report and Accounts31 Dec 2019Annual Report and Accounts31 Dec 2018Annual Report and Accounts31 Dec 2017Annual Report and Accounts31 Dec 2016Interim Report and Accounts30 Jun 2023Interim Report and Accounts30 Jun 2022Interim Report and Accounts30 Jun 2021Interim Report and Accounts30 Jun 2020Interim Report and Accounts30 Jun 2019Interim Report and Accounts30 Jun 2018Interim Report and Accounts30 Jun 2017
This fund is closed on both UK and Irish public holidays. For further details, please see the Non-Trading Days document here.
N.B. Public Bank Holidays are greyed out in the calendar below.
Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested.
Past performance is no guarantee of future results.
This fund holds bonds that are traded through agents, brokers or investment banks matching buyers and sellers. This makes the bonds less easy to buy and sell than investments traded on an exchange. In exceptional circ*mstances the fund may not be able to sell bonds and may defer withdrawals, or suspend dealing. The Directors can only delay paying out if it is in the interests of all investors and with the permission of the fund depositary.
The fund invests directly or indirectly in bonds which are issued by companies or governments. If these companies or governments experience financial difficulty, they may be unable to pay back some or all of the interest, original investment or other payments that they owe. If this happens, the value of the fund may fall.
The fund could lose money if any institution providing services such as acting as counterparty to derivatives or other instruments, becomes unwilling or unable to meet its obligations to the fund.
Derivatives are highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains.
The fund may have underlying investments that are valued in currencies that are different from sterling (British pounds). Exchange rate fluctuations will impact the value of your investment. Currency hedging techniques may be applied to reduce this impact but may not entirely eliminate it.
We may take some or all of the ongoing charges from the fund's capital rather than the fund's income. This increases the amount of income, but it reduces the growth potential and may lead to a fall in the value of the fund.
Investment returns on bonds are sensitive to trends in interest rate movements. Such changes will affect the value of your investment.
Important information
This information is intended for investment professionals only and is for information purposes only. It should not be distributed without our permission.
No investment decisions should be made without first reviewing the key investor information document and prospectus (and any supplements thereto) of the relevant product which includes information on certain risks associated with an investment.
Unless otherwise agreed in writing, the Information on this website (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Any trading or investment decisions taken by you should be based on your own analysis and judgment (and/or that of your professional advisers) and not in reliance on us or the Information.
This information is only directed at investors resident in jurisdictions where each fund is registered for sale. It is not an offer or invitation to persons outside of those jurisdictions. We reserve the right to reject any applications from outside of such jurisdictions.
All information detailed on this website is current at the time of publication and may be changed in the future.
As an enthusiast with deep expertise in investment funds, particularly those with a focus on ESG (Environmental, Social, and Governance) criteria, I'll delve into the information provided in the article about the fund in question. My understanding is grounded in the specifics of the financial industry, particularly in the realm of index funds and sustainable investing.
Let's break down the key concepts mentioned in the article:
Fund Details:
- Fund Size: $88.0 million (as of the latest available date).
- Base Currency: USD.
- Launch Date: 4 May 2023.
- Domicile: Ireland.
- Share Class Launch Statistics:
- Modified Duration: 5.40 years (as of 31 Aug 2023).
- Fund Aim: To provide investors a return in line with the performance of the global corporate bond market, represented by the J.P. Morgan Global Credit Index (GCI) ESG Investment Grade Custom Maturity Index.
Investment Strategy:
- Benchmark: J.P. Morgan Global Credit Index (GCI) ESG Investment Grade Custom Maturity Index.
- Investment Composition: Predominantly in US Dollar, Euro, and Sterling denominated investment-grade corporate bonds issued by developed market issuers.
- Management: Passively managed, aiming to replicate the performance of the Index.
Sustainability Characteristics:
- ESG Investment Strategy:
- Environmental Characteristics: Reduction of greenhouse gas emissions intensity, avoiding investments in certain fossil fuels, and supporting renewable energy and biodiversity.
- Social Characteristics: Promotion of human rights, labor rights, and anti-corruption as per the principles of the UN Global Compact, and avoiding the financing of controversial weapons.
Additional Sustainability Measures:
- Themes: Battery Value-Chain, Clean Water, Clean Energy, Hydrogen Economy, Healthcare Breakthrough, Pharma Breakthrough, Green Bonds.
- Index Methodology: Various factors like ESG scores, emissions intensity targets, and positive screening techniques.
Exclusions:
- JPM ESG Exclusions: Excludes issuers with revenue from thermal coal, oil sands, tobacco, and weapons sectors.
- MSCI Exclusions: Excludes issuers not in compliance with the UN Global Compact principles.
SFDR Categorization:
- Article 8: The fund falls under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), indicating that it promotes environmental and/or social characteristics.
Principal Adverse Impacts:
- Consideration of Sustainability Factors: The fund considers adverse impacts on sustainability factors, including GHG emissions, carbon footprint, and exposure to fossil fuel companies.
Reporting and Documents:
- Various documents such as prospectus, SFDR Product Summary, and reports and accounts are available to provide detailed insights into the fund's operations.
Risks:
- Key Risks: Standard risks associated with investments, market fluctuations, liquidity issues, and potential impacts of adverse events.
Important Information:
- Disclaimer: The information provided is for investment professionals only and should not be distributed without permission.
- Investment Decisions: Emphasizes the importance of reviewing key investor information documents and prospectuses before making investment decisions.
This breakdown showcases the fund's commitment to sustainable investing, adherence to ESG principles, and the rigorous approach taken to ensure transparency and responsible investment practices. The detailed index methodology and adherence to SFDR Article 8 further highlight the fund's dedication to environmental and social considerations.
